New figures released Wednesday by the Israel Tax Authority revealed a 25% increase in tax revenue from car sales in 2014 up to NIS 9.4 billion.
A record number of 279,000 vehicles of all makes and models were sold in Israel boosted by a 24% increase in imports. The relative jump compared to 2013 is even more impressive because that year was one of the most successful in the history of the automotive industry.
In financial terms, there was a 15% increase in vehicle sales in 2014.
"Part of the growth stems from importers' preparation for changes in the tax structure of 'green' vehicles and the incentives for different safety systems, meaning that some of the vehicles were signed out of the tax authority's supervision in 2014 ahead of the aforementioned changes but will be moved at a later date," explained Ministry of Finance officials.
The overall tax revenue collected by the state from the automotive sector including car sales and replacement parts totaled NIS 10.3 billion, a 24% increase from 2013.
The 2014 data further reveals that corporate fleets and leasing companies continue to lose influence in the market while the private consumer segment has been cementing its significance.
Much as in previous years, private leasing has continued to expand, as has the phenomenon of new vehicle sales by leasing firms.
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2015
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